Crucial

Administrator Lars-Eric Gustafsson was interviewed by Swedish radio P4 Väst today about the progress with the NEVS reorganization process. Only 12 days to go until the current deadline set by the Vänersborg district court, so time to understand the status of this critical process. Apparently, the negotiations are in a “crucial” phase yet again more time is needed. For a possible extension to happen, a settlement with the creditors to write-off part of the debt is required and this accord needs to be in place by the 29th of this month.

NEVS  ©2014 saabblog.net
NEVS ©2014 saabblog.net

Plan B gaining traction
According to Gustafsson, the talks with the two Asian OEM manufacturers (rumoured to be Mahindra and Dongfeng)have intensified. A specialized consulting firm specialized in mergers and acquisitions called Lenner & Partners (also involved in the recent takeover of Swedish truck maker (and former member of the SAAB-Scania group) by the German Volkswagen group) is said to be involved to advise on the commercials  and specific IP-rights issues.
At the same time, “Plan B”, to transform NEVS to “NEVS Industrial Services” (and to become a contract manufacturer for other automotive brands) is still in play and gaining traction. However… no contracts signed for this either yet…

Surprise, surprise…
Letters were sent to all the creditors today to explain the situation and to invite them for dialogue with the goal to reach a settlement. As I explained in a previous article about the reorganisation process, reaching such a settlement is a prerequisite for continuation of the process, so no surprise there. What is surprising is that the creditors no longer are offered full payment as they were promised on the creditors meeting on October 8th. Whether they will agree with a proposed 50% remains to be seen, but apparently some of NEVS’ assets have now been valued lower plus there is a longer need for financing the reorganisation process and hence the cry for help towards the suppliers.

Crucial
So we’re not only in a crucial phase when it comes to the negotiations for Plan A, B or possibly C…, but now also with the suppliers. If they agree to the settlement, the next creditors meeting on the 29th will become a formality and the court will likely then rule in favour of an extension of the reorganisation process by another three months (assuming that the underlying adjusted business plan is still considered viable). If no settlement can be reached, this essentially means that the reorganisation phase cannot continue and that NEVS will need to file for bankruptcy. So crucial it is…

7 Gedanken zu „Crucial

  • Hopefully we can buy an Saab EV before christmas 🙂

  • 2016? From ??? Surely not from NEVS.

  • They are all of them ill. That’s bad. I told manytimes than they should start produce old classsic cars for example Saab 900 first generations. They could so win the time which was necesary to start the production of EV cars. Every investor like get the money rush as possib;e. Saab is death because they fon’t be capable follow the easest terms. I’m sory but it’s so.

    • Michael, there is no big demand for newly produced 900’s. Even de second hand cars are not priced over € 10K, so no profitable plan at all.
      Even the 9-5 that NEVS build is not a real success; there are still cars sitting on their grounds.
      If you would have said that GM should allow NEV to produce the 9-5 NG ; that could have attracted new customers.
      It now completely depends the decision the creditors will take.

      • Of course I meant the 9-3 NEVS did build, not 9-5

  • Unmöglich wie die Lieferanten jetzt beschissen werden… Kotz…

  • The creditor committee will meet today (Thursday 20 November) and discuss the situation. For the requested extension of the reorganisation phase to be approved, a settlement needs to be reached with the creditors that together hold at least 60% of the total claim amount. This accord hasn’t been reached yet. Fredrik Sidahl, Managing Director of Komponentgruppen (the association of Scandinavian Automotive Suppliers) has reportedly said that he very much appreciated NEVS‘ earlier strategy where they had built a lot of trust with their suppliers yet that the current forced settlement will probably brutally shatter that earned trust again.

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